British precious metals dealer, Direct Bullion, stated on Monday that it believes the gold price will ‘break new records in 2021’, with lingering economic uncertainty driving demand for the commodity in the new year.
Despite a predicted 9% increase in production in 2021, Metal Focus expects gold to remain high, and above $2,000 per troy ounce. Blue Line Futures has forecast a ceiling of $2,500 by December 2021 and Goldman Sachs recently raised its 12 -month gold forecast to $2,300 per ounce.
Far ahead of these projections, though, Direct Bullion says that its research indicates a gold price increase of as much as 40%, with the potential to hit $2,800 per troy ounce over the first six to seven months of 2021.
Not settling for gold adding a tremendous amount to its price, Direct Bullion also predicts that platinum might also ‘surge’ in the new year, with the metal playing a ‘pivotal role’ in the global shift towards sustainable fuels, as precious metals act as a catalyst for hydrogen fuel cells.
Acting as testament to this fact, Hyundai announced in October that it plans to use around 70,000 ounces of platinum per year in its fuel cell stacks by 2030 – with this demand alone being equal to the total annual production of one of South Africa’s biggest platinum mines
Speaking on gold prices, and the demand for precious metals in the new year, Paul Withers, CEO of Direct Bullion, said: “Next year looks to be exciting for the precious metals market, particularly for platinum , silver and gold. With the gold price potentially reaching highs of up to $2,800, there has never been a better time to invest in physical gold as a safe haven asset.”
“The security provided by investment in physical materials is an attractive proposition to investors looking to avoid possible market volatility. We often hear our customers saying, ‘I wish I had bought more!’.”